Miami mayor Francis Suarez has touted the benefits of setting up a mining shop in the city, during an interview with CNBC last week.
Suarez said that the state's nuclear power means that such operations can benefit from “inexpensive power”. Presently, electricity per kilowatt-hour (kWh) costs 10.7 cents in Miami, which is lower than the national average.
Suarez may be hoping to attract Chinese miners after China cracked down on cryptocurrency miners, leaving other jurisdictions around the world trying to lure in fleeing companies.
Relocating these companies safely is important to the ecosystem's stability as Chinese bitcoin miners account for 65% of the global hashrate.
When Chinese miners first started unplugging from the network, the global mining difficulty for bitcoin fell.
Suarez has been busy pushing Miami as a new capital for bitcoin – a place where miners and can set up base and contribute. However, not all Chinese miners agree. In fact, Miami's electricity price has been deemed uncompetitive by many.
In comparison, Kazakhstan currently charges $0.03 per kWh making it an ideal candidate for setting up shop en masse, and some have already started to relocate.
Miami also has to ensure that it has enough properties for sale – abandoned military bases with established grids are some of the potential candidates.
However, Miami could prove tempting because of the political stability and relative freedom of running bitcoin mining operations. Kazakhstan and even Iran, which is also producing a lot of cheap energy thanks to its nuclear programs, may look like smart decisions, but instability could wipe off entire businesses.
Environmentally friendly bitcoin mining is now a central point of any discussion about bitcoin's electricity needs. In the meantime, you can spend your Bitcoin on great entertainment options such as Bitcasino, 1xBit and FortuneJack.